Originally Posted by
24/48
Interesting, I see the $2.168 billion profit which takes the PAX Revenue of $12,899 (Mainline PAX Rev) + $3,197 (Regional PAX Rev) + $471 (Cargo) + $1,955 (Other Rev) totaling $18,522 in revenue. Minus expenses totaling $16,336 you get the $2.168 billion profit.
I never did see the operating income broken down in the report, nor did I find the $2.044 billion of profit that regionals provided. I guess I have a tough time understanding how a portion of the operation that accounts for 19% of the operating revenue (money coming in) is accounting for 94% of the profits.
Regional revenue minus regional operating costs is where that number comes from. The reason regionals blow away every other part of the operation, is because they operate in markets that the regionals have a monopoly over. You will find that mainline is competing in high capacity routes where competition is fierce, and margins are thin.
For instance, I just pulled up a fare from United.com for ORD to LAX, Cost $249. I pulled a fare from ORD to ATW, cost $939. Regionals are absolute cash cows.